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The UK is poised for its first post-Brexit trade deal after Britain and Japan made a breakthrough in access to agriculture, according to negotiators.
Toshimitsu Motegi, Japan’s Foreign Minister and UK Trade Minister Liz Truss will hold a teleconference on Friday morning London time to confirm their agreement in principle to a new free trade pact, they added. .
The Tokyo deal will come at a welcome time for Prime Minister Boris Johnson, as his decision to nullify parts of the Brexit withdrawal treaty runs the risk of collapsing trade talks with Brussels.
Negotiators said they had reached a compromise on agricultural access to Japan, especially for British cheese. But it is unclear whether the UK has gained an export quota equivalent to what it had as a member of the EU.
Speaking after a cabinet meeting in Tokyo, Mr. Motegi said that his goal was to reach an agreement in principle on Friday with Ms. Truss. A Japanese negotiator warned that there are still some pending issues to be resolved by the ministers.
A senior official from the Department of International Trade confirmed that Truss and Motegi would speak on Friday morning and that “good news” was expected in important areas such as digital, data, financial services, food and beverages.
The deal will largely replicate the existing free trade agreement between the EU and Japan, which will cease to apply to the UK when the Brexit transition period ends later this year.
It will ensure that both parties maintain the benefits of lower rates. They also agreed on expanded rules on digital commerce, such as a ban on demanding algorithms or source code for software applications sold by the other country.
One of the biggest sticking points was the so-called TRQs in agriculture, which allowed European farmers to export a limited amount of sensitive food products to Japan at a lower tariff. Tokyo argued that it was up to London to discuss with Brussels for a portion of the existing quota and could not offer more.
The agriculture deal may not be clear until legal text is agreed and published, which will likely take several weeks.
Additional information from Sebastian Payne in London
